A distressed property is one where the owner has defaulted on the home loan. Several years ago, a number of home sales fall under the category of distressed sales after the housing market bubble collapsed. The amount of distressed properties available is dependent on current market conditions. Distressed homes can certainly still be found, and they present a potentially superb investment opportunity.
Budding investors considering a distressed property purchase should have a solid grasp of the differences between a short sale and a foreclosure. In a short sale, the final purchase price represents less than the amount owed to the lender. This amount involves negotiations with the lender and homeowner. In a foreclosure, the property has been repossessed, typically by a bank. Distressed properties usually involve considerable rehab work and are sold as-is, which means it requires significant funds to make all of the necessary repairs to sell it for a profit or if you intend to turn it into a rental property.
Monroe Funding Corp offers hard money loans for distressed properties you can use to purchase and/or rehab the property.
This update is by hard money lending Miami company Monroe Funding Corporation, a direct equity lender serving clients throughout Central and South Florida. We specialize in first mortgages on non-owner occupied residential and commercial property investments as well as real estate loan options. Our fast and flexible loan programs get you to the closing table quickly and professionally. For more information on hard money lenders FL or hard money loans Miami, please call 954-816-0388 or fill out our application.